If I Only Had $1,000 to Invest, I'd Buy This 1 ETF and Wouldn't Touch It for 20 Years
Key PointsThe Vanguard S&P 500 ETF gives investors instant exposure to the U.S. economy, with a higher concentration in tech stocks.
For the average investor, building wealth doesn’t require a large sum of money. What matters most is starting early and maintaining patience. Over the long term, the stock market tends to outperform other investment options. With $1,000 to invest, the Vanguard S&P 500 ETF (VOO) is the top recommendation. This ETF provides access to the S&P 500 index, composed of 500 leading U.S. companies.
The S&P 500 has delivered an annualized total return of 11.2% over the past two decades. The ETF’s performance primarily stems from information technology giants such as Nvidia, Apple, and Microsoft, which make up 21% of the portfolio. Investors benefit from a low 0.03% expense ratio, translating to only $0.30 in costs annually.
The Vanguard S&P 500 ETF’s track record demonstrates that holding it for 20 years yields significant returns. The advantage of long-term investing lies in avoiding the volatility and uncertainty of short-term market fluctuations, allowing the power of compounding to work in the investor’s favor. If given the opportunity to invest $1,000, the Vanguard S&P 500 ETF would be the go-to choice to maximize wealth growth over time.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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